Government employees in Cebu City may soon have the option to repay disallowed bonuses or allowances through installment plans, as proposed in a new ordinance aimed at easing financial burdens while ensuring compliance with audit regulations.
Key Provisions of the Proposed Ordinance
The ordinance, introduced by Councilor Alvin Arcilla, permits the city government to deduct disallowed amounts from employee salaries over a period not exceeding 12 months. This measure is designed to create a fair and humane process that balances regulatory adherence with employee welfare, preventing sudden large deductions that could disrupt personal finances.
Protections for Employees
Monthly deductions under this plan cannot reduce an employee's take-home pay below the legally mandated minimum. Additionally, deductions will only commence once the Commission on Audit's Notice of Disallowance becomes final and executory. Employees must receive written notification detailing the total amount to be refunded and the payment schedule, ensuring transparency and clarity in the repayment process.
Accountability and Implementation
The ordinance clarifies that officials who approved or certified the disallowed expenses remain accountable under COA rules, civil service laws, and the Anti-Graft and Corrupt Practices Act. Implementation will be managed by a coordinated effort among the City Treasurer's Office, City Accounting Office, Human Resource Management Office, and City Legal Office, streamlining the recovery of funds while safeguarding employees from undue hardship.
Background and Rationale
COA typically disallows expenses that lack legal basis or violate accounting regulations, often leading to significant financial liabilities for employees. Councilor Arcilla emphasized that this initiative seeks to simplify fund recovery without imposing excessive strain on workers, fostering a more equitable approach to handling audit discrepancies in the public sector.
